With imminent troubles looming in Europe, Canada just closed its three year investigation into anti-competitive practices involving Google’s search and advertising business (via The Verge). The country’s Competition Bureau ultimately “did not find sufficient evidence” that Google’s practices harmed local rivals.
As expected, the EU has formally accused Google of abusing its dominant position in search to favor links to its own products over those offered by competitors. The complaint takes the form of a Statement of Objections: a formal method of announcing that it believes Google has acted illegally and that a full investigation is underway.
The Commission’s preliminary view is that such conduct infringes EU antitrust rules because it stifles competition and harms consumers. EU Commissioner Margrethe Vestager said that “Google now has the opportunity to convince the Commission to the contrary. However, if the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe.”
Google has not wasted any time in attempting to convince the Commission otherwise, arguing in a blog post that the evidence shows that Google has not harmed traffic to competitor websites …
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After a shocking announcement this morning from Google regarding a $12.5 billion acquisition of Motorola Mobility, most are already discussing what this means for the future of Android. However, a report from WSJ claims their sources are reporting Motorola has an “unusually large” 20% reverse termination fee in place that would see Google paying $2.5 billion if the deal falls through.
The report claims this might be proof Motorola is worried the acquisition could be the subject of antitrust regulators who are already investigating Google for its ability to abuse its market lead. However, Google execs noted in a conference call with financial analysts this morning that they aren’t worried about the deal being seen as anti-competitive in nature.
Why would the deal fall through? The report points to potential legal hurdles in Washington, similar to those that allegedly stopped a Groupon acquisition from happening. Google is already the subject of an antitrust probe related to their purchase of ITA software, and continues to be in the middle of intense legal battles with rival smartphone makers.
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